In the past, we've awarded the Editors' Choice to a number of Panasonic superzoom cameras, such as the Lumix DMC-FZ30, specifically for their combination of excellent optics and image stabilization. The only caveat was that most cost about what you'd pay for a D-SLR nowadays. Thankfully, prices have taken a tumble. So it's no big surprise that the new Panasonic Lumix DMC-FZ7 sells for about $400not super-cheap, but more than $100 below what the Lumix DMC-FZ15, our former budget superzoom EC, listed for when it was introduced. This low price and the camera's excellent optics make the Lumix DMC-FZ7 our new Editors' Choice for budget superzooms.

The Panasonic Lumix DMC-FZ7 is a 6-megapixel camera with an outstanding 12X optical zoom. The lens has a 6mm to 72mm range (equivalent to a 35mm lens with a 36mm to 432mm zoom) and corresponding maximum f-stops of f/2.8 to f/3.2. The aperture range is quite nice for the telephoto end of the zoom. That means you'll have a better chance of capturing a sharp picture in low light when using the zoom.

As with most other Lumix superzooms, you can use either the electronic viewfinder (EVF) or the 2.5-inch LCD to compose you images. The LCD is decent, although it solarizes when looked at from a sharp angle. If the DMC-FZ7 had an articulating LCD, as the FZ30 does, this would be less noticeable. The EVF also worked pretty well, although I found it a little hard to see in low light; Panasonic should try to improve that.

The camera itself has lots of logically placed controls, buttons, dials, and switches for various functions. This means you don't have to scroll through menu after menu to change a simple setting. The flash pops up when you press the flash button.

In my real-world test shots, such as shooting tree branches against a bright sky, I found a bit of purple fringing near the edges of the photo. Some fringing also showed up on a number of indoor shots. Overall, though, most of the images were quite clear and sharp, and the colors were vibrant.

Another thing I liked about this camera was that the video lets you shoot 640-by-480 QuickTime Motion JPEGs at 30 frames per second to the capacity of the card. Video capture worked well in both bright light and low light, with the resulting clips showing little noise. The camera also did a pretty decent job of adjusting from low light to bright light. Unlike the FZ30, which includes a zoom ring, the FZ7 doesn't allow either optical or digital zooming when shooting video.

The daylight test shot had a little noncolored noise, but nothing that detracted from the image's sharpness. The colors were accurate but could have been a little more saturated. There were no color casts (where an image looks bluish or reddish) at all, something I also noticed on the FZ15. There was very little fringing in the image.

My flash test shot came out nearly as good as that of the FZ15. It didn't have any blown-out highlights, which were a problem on both the FZ15 and the Sony Cyber-shot DSC-H1. The FZ7 provides even flash illumination, but it could be just a touch stronger. There was more noise and fringing than in my daylight shot, and some of it was colored.

Both the daylight and flash test shots were a tad underexposed, but they had excellent dynamic range and very good contrast, nearly identical to the image quality I saw on the FZ15.

The FZ7's 3.3-second boot-up time is just average, but its 1.6-second recycle time is excellent. There's some shutter lag, but nothing terrible. Resolution averages 1,500 lines, which is above average for a 6MP camera. I saw no pincushion distortion at the telephoto end of the zoom range. At the wide-angle end, there's just a touch of barrel distortion. Overall, this lens seems quite free of distortion.

I tested the two image stabilization modes (one continuous, one for just when you shoot) that come with the FZ7. In both low and bright light, the images were dramatically improved when image stabilization was turned on.

You won't find a more inexpensive superzoom than this one, especially one with 12X optical zoom and image stabilization. Given the FZ7's above-average video capabilities, it is easy to see why it's our EC for budget superzooms.

Terry Sullivan is a writer, photographer and artist, who has worked in the photo industry for nearly a decade. In 1998, Terry was hired by Photo District News, a monthly magazine for professional photographers, as...

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